After a series of UK Offshore Wind Supply Chain Conferences around the country run by Regional Development Agencies and the Crown Estate to identify opportunities and challenges in setting up an offshore wind infrastructure in the UK it finally looks as though these opportunities are being realised.
It was announced in the news this week that hundreds of jobs will be created through a new £80m offshore wind turbine factory. The production plant will belong to German wind turbine manufacturer Siemens who hope that the factory will be built and operational by 2014, with the first turbines turning by 2015.
The exact location of the new facility remains to be confirmed; however it is likely that the offshore wind turbine production facility will be built on the east coast or in the north east of England.
It is believed that the new Siemens wind turbine factory will create around 700 jobs as well as additional indirect jobs in the supply chain; however, it was only last year that 600 British workers lost their jobs when the country’s only major wind turbine factory on the Isle of Wight – owned by Danish company Vestas – closed with Vestas blaming the lack of demand for wind turbines in the UK.
Mitsubishi also announced recently their intention to invest up to £100 million in an offshore wind turbine R&D project in the UK under an MoU with the UK Government. Their shipbuilding division is also looking to enter the offshore wind installation and operation and maintenance vessel market. They would join the likes of Keppel, Lamprell and Daewoo who have all announced contracts for newbuild windfarm installation vessels recently.
The deployment of offshore wind is expected to accelerate over the next decade with a total potential capacity of over 40 GW currently being planned across the UK (25 GW within the Round 3 offshore wind leasing round). The challenge to deliver this programme is enormous and will make offshore wind in the UK one of the world’s largest infrastructure projects with a potential investment by 2020 of over £100 billion.